100 % mortgage revenue collects speed as the buyers target for the first time

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The mortgage return gathered 100 percent in the UK, with the lenders dismantling their standards in an attempt to boost homes.

In April and Justice mortgages, the mortgages launched the total deals that are not raising this month, as mortgage brokers expect to strike more market in a move that reminds us of the real estate market before the financial.

“It is clear that the demand is there, and since lenders compete more, we will likely see more deposit offers or do not appear in the coming months,” said Nicholas Mendes of John Charcol mediation.

I launched a mortgage specialized lender in April without deposit available for people with a salary of 24,000 pounds or more at a fixed price for 10 or 15 years. A few days later, Gable Mortages made a similar deal on a five -year -old steady price targeting buyers for the first time and those looking for newly built homes.

Among the other lenders who offer zero loans to accuracy, the Skipton Building Society, Halifax and Barclays, although the last two deals come with circumstances.

These deals, which were prevailing in the period leading up to the 2008 financial crisis, have largely disappeared as lenders became more conservative in the face of the most stringent organization and increased scrutiny.

“We are starting to see the return of the appearance of real estate loans by 100 percent, but there will be a lot of checks the ability to afford costs, which is very good,” said Simon Jamun, the Knight Frank Finance administrative partner.

These deals come with high borrowing costs. GABLE and April offer 5.95 percent and 5.99 percent rates for real estate mortgages, respectively. On the contrary, the average mortgage price for five years is 5.09 percent according to Moneyfact introductions.

Mendes said that new loans “can” play an important role for tenants who have strong and stable income and good credit history, but they were unable to save because of the high cost of living. “

The demand for low deposit requirements has increased in recent years, as the budget of the aspiring homes struggle with a few savings or not fight them on the property ladder. The average deposit for the purchase of a property in the UK is more than 60,000 pounds and more than 100,000 pounds in London, according to Halifax.

Real estate mortgage experts who remember the 2008 financial collapse refers to the risks associated with these loans, which may deter adult lenders such as LLOYDS and NatWest from presenting these offers.

One of the concerns is the risk of negative fairness of buyers in the event of low prices of homes, as the value of their home decreases without what they owe.

Jamun said: “The big mistake that was made (before the financial crisis) was that people just assume that the prices of home will continue to rise and there will be no problem in borrowing 100 percent.”

He added that new loans may work in specific circumstances, as is the case for people who believe they can improve the value of their home, or for those who aim to pay some of their debts in the near future.

He added: “I do not recommend it to a person who would have been supposed to be the price of home over time.”